Question

please , help with these exercises . thanks

repare general journal entries for the transactions. (Round to t to acquis come statem Durile 1. Land sile E10-23 (L05) (Analysis of Subsequent Expendare is important that they be accounted for properly. Any analysis of Subsequent Expenditures) Plant assets often require expec accounted for properly. Any errors will affect both the balance sheera real estate ag were recover number of years the land val at a cost of Instructions in the for each of the following items, indicate whether the expenditure should be capitalized incurred. Improvement Replacement of a minor broken part on a machines Expenditure that increases the useful life of an existing asset Expenditure that increases the efficiency and effectiveness of a productive asset but does not ince salvage value penditure that increases the efficiency and effectiveness of a productive asset and increases the a salvage value. penditure that increases the quality of the output of the productive asset improvement to a machine that increased its fair market value and its production capacity by 30% with extending the machine's useful life. Ordinary repairs. and increases the se's The buil 3. A third @ @s 4. During Decem manne 5. A grou of pro were Instructio E10-24 (L06) (Entries for Disposition of Assets) On December 31, 2017, Travis Tritt Inc. has a machine with a book valioel $940,000. The original cost and related accumulated depreciation at this date are as follows. Machine $1,300,000 Less: Accumulated depreciation 360,000 Book value $ 940,000 (a) F Depreciation is computed at $60,000 per year on a straight-line basis. (b) Instructions Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to is disposal. (a) A fire completely destroys the machine on August 31, 2018. An insurance settlement of $430,000 was received for this casualty. Assume the settlement was received immediately. (b) On April 1, 2018, Tritt sold the machine for $1,040,000 to Dwight Yoakam Company (o On July 31, 2018, the company donated this machine to the Mountain King City Council. The fair value of the machine at the time of the donation was estimated to be $1,100,000. P10-2 of Lob

Answer 1

Improvement	Capitalized
Replacement of a minor broken part on a machine.	Expensed
Expenditure that increases the useful life of an existing asset.	Capitalized
Expenditure that increases the efficiency and effectiveness of a productive asset but does not increase its salvage value.	Capitalized
Expenditure that increases the efficiency and effectiveness of a productive asset and increases the asset's salvage value.	Capitalized
Expenditure that increases the quality of the output of the productive asset.	Capitalized
Improvement to a machine that increased its fair market value and its production capacity by 30% without extending the machine's useful life.	Capitalized
Ordinary Repairs	Expensed